“We saved this small group (32) $30,000 last year and they now have one year’s premium in the bank.”
“They were in a fully insured plan but 18% yearly increases were killing them. They’re now in their fourth year and in the past offered a $250 deductible ($750 per family). Now they have a $0 deductible overseas and the rate has stayed the same for overseas staff over the last four years. In fact, we lowered their payments by 5%. Even better news is that over the last four years not only have we been able to pay their small increases out of reserves, (The last two yearly increases were 3% and 5%) but they now have a full year’s annual premiums in the bank in case of a bad year.”
And we saved them about 25% per year over what they could be paying!
A huge claim or series of claims could put this small group, out of Pennsylvania, in serious jeopardy. What we like about partial self-insuring this group is that they are still fully-insured, so no surprises and no big risks. We have saved them enough money (in the bank) to smooth out any really rough years and they have lots of options.
Their people are happy and fully protected. That is of primary importance to us especially after hearing about how much others are facing huge problems with increases and being forced to pay when they are mostly on shoestring budgets already.”